UASC Settles on US Shipping Act Violation Claims

U.S. Federal Maritime Commission (FMC) has completed compromise agreements with Dubai-based United Arab Shipping Company (UASC) and six non-vessel-operating common carriers (NVOCCs) for alleged violations of the U.S. Shipping Act and FMC’s regulations, recovering a total of USD 1,227,500 in civil penalties.

The parties settled and agreed to penalties, but did not admit to any violations.

UASC allegedly unlawfully rebated to its NVOCC customer, Falcon Maritime and Aviation Inc., a portion of the applicable service contract rate in the form of an administrative fee not identified in the service contract, and for which no services were provided. UASC also allegedly provided transportation not in accordance with the rates and charges in its published tariff. Under the terms of the compromise, UASC paid USD 537,500 to FMC.

FMC Chairman Mario Cordero said: “I commend the staff at FMC in fulfilling their responsibility to protect the American shipping public from entities who may be in breach of the Shipping Act. The compromise agreements demonstrate how serious we are about protecting the international shipping marketplace from fraud and threats to cargo security, and in our commitment to shield the many lawful participants in international trade from commercial deception and other unlawful trading practices.”